FSSAI bans Dabur products over misleading '100%' claims; Dabur pushes back
Synopsis
Key Takeaways
The Food Safety and Standards Authority of India (FSSAI) has issued a prohibition order against Dabur India Limited, directing the FMCG major to immediately halt the sale of products carrying claims such as ‘100 per cent Natural’, ‘100 per cent Pure’, ‘100 per cent Organic’, and ‘100 per cent Tender Coconut Water’. The regulator found these claims ambiguous, unverifiable, and likely to mislead consumers. Dabur, in turn, has contested the order, asserting that its labels comply with the prevailing legal and regulatory framework.
What the FSSAI Order Says
The food regulator’s action targets a range of Dabur products where ‘100 per cent’ qualifiers were used on packaging. FSSAI observed that such absolute claims cannot be substantiated under existing food safety standards and create a false impression of purity or organic status.
Additionally, Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey were found to display the Jaivik Bharat logo without a valid FSSAI organic endorsement — allegedly violating the Food Safety and Standards (Organic Foods) Regulations, 2017. Separately, Dabur Hommade Coconut Milk was flagged for carrying the claim “100 per cent Purity”, which the regulator said is not permitted for compound food products.
FSSAI has directed Dabur to submit an Action Taken Report (ATR) within 15 days of the order.
Dabur’s Response
In a regulatory filing with the BSE and the NSE on Tuesday, 4 August, Dabur India said it stood firmly behind its products. “Dabur India Limited believes that the declaration on our product labels comply with the prevailing legal and regulatory framework and are consistent with long-standing industry practices. Dabur stands by the purity and quality of its products and has never made any misleading claims,” the company stated.
The company added that it “continues to maintain the highest standards of quality, food safety and regulatory compliance” and is “seeking legal advice on the future course of action.”
Business Impact and Market Reaction
Dabur sought to limit investor concern, noting that “the impact on the Company’s business operations, financial position or performance is limited to objected food products only.” Despite the reassurance, the market reacted sharply: Dabur India’s stock closed 4.32 per cent lower at ₹407.40 per share on the day of the order.
This comes amid a broader tightening of FSSAI’s enforcement posture on labelling and organic certification, with the regulator having previously acted against several food brands over unsubstantiated health and purity claims.
Regulatory Context
The Jaivik Bharat logo, administered under the Food Safety and Standards (Organic Foods) Regulations, 2017, can only be used by producers with a valid organic certification issued or endorsed by FSSAI. Displaying it without such endorsement is a direct regulatory violation, irrespective of the actual composition of the product. The prohibition order signals that FSSAI is moving beyond advisory notices toward enforceable action in labelling disputes.
What Happens Next
Dabur must file its ATR within 15 days, outlining steps taken to comply. The company’s decision to seek legal counsel suggests it may challenge the order, which could prolong the timeline for resolution. Industry observers will watch whether other FMCG players with similar ‘100 per cent’ label claims face comparable scrutiny in the coming weeks.